Separation deal for Derby tax clerk pending

DERBY -- The Board of Aldermen took action this week that could lead to the end of employment of a tax clerk suspended in June for allegedly mishandling cash.

During a special meeting held behind closed doors Tuesday night, the aldermen unanimously directed Corporation Counsel Joseph Coppola to draw up a separation agreement for Katherine Kulhawik. It is to be presented at the board meeting at 7 p.m. Aug. 23 in City Hall.

Coppola told the Valley Gazette following Tuesday's meeting that the terms of the agreement would essentially find Kulhawik voluntarily resigning from her post, effective the day she was suspended June 25, and that she would receive no benefits, would not get her job back and would not file a grievance.

The aldermen, during a special meeting last week, voted to take no action on the terms of an agreement presented by Kulhawik's attorney, Donald Walsh of New Haven. Walsh later presented an unwritten new offer, and that's why the aldermen opted to have Coppola draft an agreement for the city.

Walsh was not available for comment.

City officials have remained tight-lipped about the situation in which Kulhawik has been at the center of an investigation Coppola launched in late June.

Kulhawik was accused of questionable record-keeping practices in the tax office. The investigation concluded she "mishandled" some cash payments and committed some type of alleged "fraud" on those who paid tax bills in cash.

Kulhawik had been employed full-time for more than a year. She was suspended without pay and escorted out of City Hall.

Tax Collector Denise Cesaroni became suspicious that something was amiss with Kulhawik's data entry of cash payments after a taxpayer called her office and requested some information.

The taxpayer had requested a motor vehicle release because officials at the state Department of Motor Vehicles said the original release from the tax office looked suspicious.

Cesaroni initially said she was unable to provide the release because her taxes were not current. The taxpayer said her sister paid the taxes in cash the day before. That triggered Cesaroni to look into the payment history, and discovered that the transaction had been voided. She looked further into similar transactions handled by Kulhawik, and learned that several accounts where cash payments were made apparently had been deleted. Cesaroni recommended to city officials that Kulhawik be immediately suspended while she investigated "this pattern of voids" in the computer system.

Neither Coppola, Mayor Anthony Staffieri nor any of the aldermen would say whether money was missing from the tax office. A source said "under $10,000" is involved.

Police had been informed of the situation, but Chief Jerry Narowski said there was no criminal investigation.

Coppola had said residents have been properly credited in the computer system for making tax payments.